Anyone who can't see the problem with extreme income inequality is extremely short-sighted, and has no understanding of history.
Yup!
In fact, one of the very things that allowed the United States to emerge as it did was BECAUSE it was at least a relatively more equal society than most others at the time of it's beginnings,
Exactly. Americans with little money could go west, claim a piece of land and work their asses off to make something of it. Try doing that now.
and that's true for several societies that have become relatively "successful" in the modern world, and the reasons for that are incredibly obvious.
You want to know what made America's monied classes the wealthiest in the world starting around 1850 on through on to about 1950 (in order of when things happened
1. Huge untapped
resources (we got the land for FREE!)
2.
isolationism from Europe's problems and the ability to benefit from their wars
3.
protectionism against FREE trade that fostered American industies
4.
patent laws promoting invention, AND the recognition from EUROPE to respect those patents
5.
American genius to
invent busines systems and
inventions that created the robber baron class. (there was no already existing class to stop that robber baron class from forming like there was in so much of Europe)
The above conditions set up the USA to become a great two tier economic system. It gave America the capital formation to take itself to the next step of modern economic development.
6
Unionism and reform liberalism -- yes, by making America a place where we could foster a faily affluent middle class, the monied classes (who fought these developments tooth and nail) actually became even more wealthy than they're ever imagined possible.
Look at what has happened in the societies where income is most skewed, just look at the history of Latin America and it's extremely easy to see- a small minority owned nearly all the land, all the resources and all the capital. Such a ridiculously wealthy minority has no need to utilize all the resources in their optimal way, and the inequality has been very hard to eliminate. The national economy begins to stagnate, because the domestic market begins to shrink. Political freedom diminishes, because anyone can face the reality, that the richer you are, the more influence you will have. That small percentage of the population with vast resources can easily monopolize information, and thus monopolize power. They begin to be above the law, even. Government spending begins to slant strongly towards the interests that are controlling the information (and political power).
YES! People forget that when money becomes so powerful that it dominates the society,
it ALSO represses creativity, that might otherwise bubble up fromt he Masses. There would have been no John D, Rockefeller in Brazil because that artisocrapic society would have prevented him from blooming into the robber baron.
Sure, "Never in America!". Well, obvously it's not entirely like that now, but the thing with income inequality is that it can very easily spread. It takes two homeless people to produce several homeless children, and considering the fact that if the major interests that fund government campaigns have no need for public education, then education goes down. The underclass grows. In any relatively serious economic situation more join the underclass and not as many come out, all the while it becomes increasingly easier for the already very wealthy to keep expanding their wealth. All of it happening over the course of the years, obviously, not a sudden impact. But it's quite dangerous, and it could very well happen.
Look at history.
What it teaches us is that a society with a wealthy upper class, a reasonably affluent middle class, and a small poverty class is more prodcutive than a society where the middle class is small.
America and then EUROPE became powerful first because their upper classes became powerful, but then the began to dominate the world because they established laws and socieal systems which FOSTERED that affluent middle class.
This is why I hate libertarianism.
It is the kind of short sighted thinking that monarches and aristocraps have had since mankind sormed society.
MOney and power trumps brains and creativity IF we alow that to happen.
that is what people like Ayn Rand don;t seem to realize.
Yes, people who work hard and create SHOULD get rich.
But if the system is too lopsided most of those people never will get that chance.
doubt me? Consider that most of the technological aflluence came from the genius of well educated middle or upper middle classes..as does most of the invention, science and so forth this nation depends on to make it great.
Crush that middle class you you kill that steam of bright and hopeful people.
That, is what I think America is in the process of doing right now, to be frank.
We're eating our children, folks.